We recently blogged about the negative impact of home bias on equity returns for institutions based in North America, Japan and Australia since the global financial crisis.
Despite decades of collapsing barriers in financial markets, we found institutional investors in almost every market were overweight domestic equities—what’s called home-country bias—resulting in a large underperformance versus a basket of global stocks. The sole beneficiary of home bias in this period were US institutions, which benefited from the outperformance of US equities and the strength of the US dollar over the 12-year period examined.
Read the full blog post now at the link below
